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Education Undersecretary Sends 9M Defaulted Loans to Treasury, Rejects Forgiveness

4/25/2026

Summary

Story summary

U.S. Undersecretary of Education Nicholas Kent announced the Department of Education will move 9 million defaulted student-loan accounts to the Treasury, said loan forgiveness will not happen, and urged repayment focus.
Kent called the Treasury for the $1.7 trillion portfolio and promoted a Repayment Assistance Plan launching in July.
Experts warned the plan could raise borrowers’ monthly bills by hundreds of dollars, while Kent said default harms credit and makes housing harder.

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Story summary

U.S. Undersecretary of Education Nicholas Kent announced the Department of Education will move 9 million defaulted student-loan accounts to the Treasury, said loan forgiveness will not happen, and urged repayment focus.
Kent called the Treasury for the $1.7 trillion portfolio and promoted a Repayment Assistance Plan launching in July.
Experts warned the plan could raise borrowers’ monthly bills by hundreds of dollars, while Kent said default harms credit and makes housing harder.